Multiple Choice
Companies A and B both report net income growth of 12% per year.Company A has a receivables turnover ratio of 5.6,which is lower than last year.Company B has a receivables turnover ratio of 11.3,which is higher than last year.All other things being equal:
A) Company A is more effectively managing its receivables.
B) Company B is more effectively managing its receivables.
C) Company A's days to collect is lower than Company B's in both years.
D) Company B's days to collect increased.
Correct Answer:

Verified
Correct Answer:
Verified
Q230: If the Allowance for Doubtful Accounts on
Q231: The Perry Company reported Accounts Receivable,Net of
Q232: The Dubious Company operates in an industry
Q233: IBM signs an agreement to lend one
Q234: A contra-asset account,such as Allowance for Doubtful
Q236: Which of the following statements about the
Q237: Total doubtful accounts at the end of
Q238: Which of the following statements about receivables
Q239: A scenario under which a company's credit
Q240: Foothill Construction uses the allowance method for